HomeMy WebLinkAboutRES NO 142-13CITY OF BAKERSFIELD
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Approved ___11 10-13
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF BAKERSFIELD
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System
by the execution of a contract, and sets forth the procedure by which said
public agencies may elect to subject themselves and their employees to
amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption
by the governing body of the public agency of a resolution giving notice of
its intention to approve an amendment to said contract, which resolution
shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21548 (Pre- Retirement Option 2W
Death Benefit) for service credit accumulated after the
effective date of this amendment to contract for local police
members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the
Public Employees' Retirement System, a copy of said being
attached hereto, as an "Exhibit" and by this refefpnc e a e
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November 6, 2013
Date adopted and approved
(Amendment) CaIPERS ID #3050192847
CON -302 (Rev. 4/96)
ing Officer
HARVEY L. HALL
Title
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229 -2709
(888) CalPERS (225 -7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
By signing below, I hereby certify that in accordance with Section 7507 of the
Government Code statements 1, 2, and 3 are true; and that statement 4 is applicable
and is true if I have placed my initials beside the statement:
1. Services of an actuary were secured to provide a statement of the actuarial
impact upon future annual costs before authorizing changes in retirement plan
benefits.
2. The actuary prepared a statement of the actuarial impact of the proposed
changes in benefits upon future annual costs, including normal cost and any
additional accrued liability. The statement of the actuarial impact for the increase
in benefits was made public on NOVEIffiER 6. 2013 at a public meeting
(date)
of the CITY COUNCIL of the
(governing body)
CITY OF BAKERSFIELD
(public agency)
which is at least two weeks prior to the adoption of the final Resolution /
Ordinance.
3. Adoption of the retirement benefit increase will not be placed on the consent
calendar.
4. [INITIAL HERE IF THIS STATEMENT APPLIES]
An actuary was present to provide information as needed at the pubk pub ' mee 'ng at
which the adoption of the benefit change was consi red. a pr nc an
actuary is required if future costs of the bengfd ch ge of the
future annual costs of the existing benefits
HARVEY L. HALL
Print Name of Authorized Signer
MAYOR
Title
Date November 6, 2013
PERS- CON -12AA (rev. 6/09)
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HEREBY CERTIFY that the foregoing Resolution was passed and
adopted by the Council of the City of Bakersfield at a regular meeting thereof held on
NOV 0 6 2013 , by the followina vote:
✓ ✓ ✓ ✓ W, ,/
COUNCILMEMBER, RIVERA, MAXWELL, SMITH, HANSON, SULLIVAN, JOHNSON
NOES: COUNCILMEMBER tjCh IO
ABSTAIN: COUNCILMEMBER YlC"
45SE . COUNCILMEMBER IA-¢i✓
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CITY CLERK and EX OFFI CLERK of
the Council of the City of B ersfield
APPROVED NOV 0 6 2013
HARVEY L. HALL
MAYOR of the City of Bakersfield
APPR VV as to form:
VIRGIN16 A. GENNARO
CITY ATTORNEY of the City of Bakersfield
Attachments
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Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Bakersfield
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective August
1, 1944, and witnessed July 17, 1944, and as amended effective January 1, 1950,
November 1, 1957, October 1, 1958, April 1, 1965, October 1, 1967, January 1, 1971,
June 26, 1972, January 22, 1973, May 23, 1973, September 19, 1973, April 24, 1974,
January 1, 1977, September 25, 1978, March 23, 1979, October 3, 1983, June 6, 1992,
April 15, 1993, February 20, 1995, February 19, 1997, November 20, 1999, May 26,
2001, July 15, 2002, December 1, 2003, December 20, 2008, March 30, 2009 and April
11, 2011 which provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 18 are hereby stricken from said contract as executed
effective April 11, 2011, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 60 for local miscellaneous members entering membership in
the miscellaneous classification on or prior to December 20, 2008, age 55
for local miscellaneous members entering membership for the first time in
the miscellaneous classification after December 20, 2008 and age 50 for
local safety members.
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2. Public Agency shall participate in the Public Employees' Retirement
System from and after August 1, 1944 making its employees as
hereinafter provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except those, which by
express provisions thereof, apply only on the election of a contracting
agency.
3. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non - CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas
(c) Public Agency's agreement with a third party other than
CaIPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
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5. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
a. EXCLUDE ALL FIREMEN EMPLOYED ON OR PRIOR TO JUNE
26, 1972 EXCEPT THOSE IN EMPLOYMENT ON CONTRACT
DATE WHO WAIVED RIGHTS UNDER LOCAL SYSTEM; AND
b. SCHOOL CROSSING GUARDS AND POLICE CADETS HIRED
ON OR AFTER FEBRUARY 1, 1974.
6. Prior to January 1, 1975, those members who were hired by Public
Agency on a temporary and /or seasonal basis not to exceed 6 months
were excluded from PERS membership by contract. Government Code
Section 20336 superseded this contract provision by providing that any
such temporary and /or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Government Code Section 20305 effective July
1, 1994.
7. Assets heretofore accumulated with respect to fire members under the
Bakersfield Fire Department Disability and Retirement System who waived
their rights under that system on June 26, 1972 have been transferred to
the Public Employees' Retirement System and applied against the liability
for prior service incurred thereunder. That portion of assets so transferred
which represent the accumulated contributions (plus interest thereof)
required of the employees under said local system have been credited to
the individual membership account of each such employee under the
Public Employees' Retirement System.
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after July 15, 2002 shall be determined
in accordance with Section 21354 of said Retirement Law (2% at age 55
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after July 15, 2002 and not entering membership for the
first time in the miscellaneous classification after December 20, 2008 shall
be determined in accordance with Section 21354.3 of said Retirement Law
(3% at age 60 Full).
10. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after
December 20, 2008 shall be determined in accordance with Section
21354.5 of said Retirement Law (2.7% at age 55 Full).
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11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member entering
membership in the safety classification on or prior to April 11, 2011 shall
be determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a local safety member entering membership for
the first time in the safety classification after April 11, 2011 shall be
determined in accordance with Section 21362 of said Retirement Law (2%
at age 50 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624 and 21626 (Post- Retirement Survivor Allowance)
for local safety members only.
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
C. Section 21319 (One -Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation
repealed said Section effective January 1, 2002.
d. Section 21325 (One -Time 3% to 15% Increase For Local
Miscellaneous Members Who Retired or Died Prior to January 1,
1974). Legislation repealed said Section effective January 1, 2002.
e. Section 20042 (One -Year Final Compensation) for those local
miscellaneous members entering membership on or prior to
December 20, 2008 and those local safety members entering
membership on or prior to April 11, 2011.
f. Section 20903 (Two Years Additional Service Credit).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits).
h. Section 21024 (Military Service Credit as Public Service).
Section 20475 (Different Level of Benefits). Section 21354.5 (2.7%
@ 55 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after December 20, 2008.
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Section 21362 (2% @ 50 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to local safety members
entering membership for the first time in the safety classification
after April 11, 2011.
Section 21548 (Pre- Retirement Option 2W Death Benefit) for local
miscellaneous members, local fire members and for service credit
accumulated after the effective date of this amendment to contract
for local police members.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
January 1, 1977. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
15. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
16. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
C. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
17. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
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18. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effective on the day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF BAKERSFIELD
BY
KAREN DE FRANK, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #3050192847
PERS- CON -702A
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229 -2709
(888) CalPERS (225 -7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
CITY COUNCIL of the
(governing body)
on November 6, 2013
(date)
CITY OF BAKERSFIELD
(public agency)
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Clerk/Secretary FF
CITY CLERK
Title
PERS - CON -12 (rev. 1/96)
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